China Merchants Bank Co., Ltd.2013 Interim Results Announcement

1

Forward-Looking Statement Disclaimer

This presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or may be expressed to be results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which reflect our belief only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. They relate to future events or our future financial, business or other performance and are subject to a number of uncertainties that may cause our actual results to differ materially.

Agenda

1 Overview

2 Operational Information

3 Key Tasks in 2H2013

4 Outlook and Strategies4

1H2012 1H2013

1.53% 1.46%

2012 1H2013

2,532,4442,797,578

23,374

26,271

1H2012 1H2013

0.56% 0.61% 0.71%

404.03%351.79%

304.72%

1H2012 2012 1H2013NPL ratio NPL allowance coverage ratio

27.00%25.46%

1H2012 1H2013

2012 1H2013

1,904,463 2,098,078

3

Profitability, asset quality and scale maintainedbalanced development with strong overall performance

Net profit maintained steady growth ROAA and ROAE remained stable

Overall asset quality remained under control Total loans and total deposits continued to grow

ROAA ROAE

(RM

B m

illion

)

Total loans Total deposits

(RM

B m

illio

n)

Note: In this presentation, unless otherwise indicated, all financials are on consolidated Group financials and all business data are on standalone Bank financials; unless otherwise indicated, all data shown in this presentation are based on IFRS and denominated in RMB (hereinafter inclusive)

1H 2012 1H 2013

32.15%36.73%

2012 1H2013

377,550525,314

21.25%

24.93%

2012 1H2013

Business structure was further optimised

4

Contribution from retail banking business continued to increase

Contribution from net non-interest income continued to grow

Small and micro enterprises loans increased rapidly

The proportion of net fee and commission income grew robustly

Pre-tax income from retail banking business

1H2012 1H2013

22.59%

28.95%

Total small and micro enterprise loans

Small and micro enterprise loans as a percentage of domestic general loans1

16.69%

21.74%

1H2012 1H2013

Note: All data on this slide is based on standalone Bank financials1. Domestic general loans excluding discounted bills

(RM

B m

illion

)

5,3835,653

2012 1H2013

19,518

22,606

2012 1H2013

5

Customer structure continued to improveTotal No. of Sunflower-level

and above customers

Total No. of private banking customers

91.1

100.0

2012 1H2013

Total No. of retail customers

(10,

000

cust

omer

s)

64,98868,251

2012 1H2013

Total No. of wholesale high-net-worth customers

(10,

000

cust

omer

s)(N

o. o

f cus

tom

ers)

(No.

of c

usto

mer

s)

Note: Based on standalone Bank financials

90,456

86,116

0.17%

0.04%

2012 1H2013

贷款余额 不良贷款率

6

Credit structure was further optimised

Loans extended to localgovernment financing vehicles

Loans extended to real estate enterprises

(RM

B m

illio

n)

(RM

B m

illio

n)

Annualised non-performing loan (NPL) formation ratio

0.58%

1H2013

Loan balance NPL ratio

Note: Based on standalone Bank financials

80,460

79,118

0.77% 0.74%

2012 1H2013

Loan balance NPL ratio

22.95%

30.11%

2012 1H2013

21.21%

21.25%

2012 1H2013

11.80%

12.46%

2012 1H2013

Operating efficiency was further enhancedRAROC

Profit before tax per person (annualised)

Profit before tax per outlet (annualised)

Floating band of weighted average

interest rates of new retail loans in RMB

Floating band of weighted average

interest rates of new corporate loans in RMB

32.26% 31.64%

1H2012 1H2013

Cost-to-income ratio

7

Tier 1 CARCAR

2012 1H2013

8.34%

8.00%

2012 1H2013

11.41%

10.72%

1.30 1.36

1H 2012 1H 2013

64.81

67.68

1H 2012 1H 2013

(RM

B m

illion

)

(RM

B m

illion

)

Note: All data on this slide is based on standalone Bank financials except for CAR and tier 1 CAR.

8

Brand recognition continued to improve

The Asian BankerAwarded the Best Joint Stock Retail Bank in China for the

ninth time in 2013

Best Mobile Phone Banking Product in China, 2013

Commendation Award for SME Business in China. 2013

The AssetBest Cash Management for SME in China, 2013

Best Custody Specialist in China for the fourth time in 2013

EuromoneyBest Private Banking Services Overall in

China 2013

Best Relationship Management

Best Range of Investment Products

Best UHNWI Services

Factors China International1st Chinese member recognized as

“Best Export Factor", 2013

2012 CSR Report of the Chinese Banking Industry

Financial Sector CSR Award of the Year for three consecutive years

The Chinese BankerBest Innovative Financial Service Award,

2013

Top Ten Financial Product Innovation Award, 2013

Top Ten Financial Offering Marketing Award, 2013

ACCE“The World's Best Call Center"

and ranked among the top four in the world

2013 "Chinese customer satisfaction survey"

Ranked No. 1 in the banking service sector in "Chinese customer satisfaction survey" for five consecutive years

Agenda

1 Overview

2 Operational Information

3 Key Tasks in 2H2013

4 Outlook and Strategies4

1.85%

2012 1H2013

43,641

47,441

30,178

32,942

1H2012 1H2013

净利息收入 利息支出

2012 1H2013Placement with other banks and financialinstitutionsBalances with central bank

Bond investments

Loans and advances

60.59% 60.63%

14.53%13.86%14.22%

13.88%10.67%

11.62%

2012 1H201310

Net interest income grew steadily

Net interest income Interest-bearing liabilitiesSteady growth of interest-earning assets

2,921,423

8.71%

9.16%

Proactively enhanced the risk asset pricing capability and controlled funding cost to limit the decline of NIM

Interest-earning assets

3,311,673

Net interest margin

3.03% 2.89%

-14bps

Annualized average cost ratio of customer deposits

1.91%

-6bps

Note: Based on consolidated Group financials

Net interest income

Interest expense

2012 1H2013

Issued debts

Placement from other banks and financialinstitutionsDeposits from customers

81.38%81.82%

16.53%

15.85%2.09%

2.33%2,721,536

3,067,721

(RM

B m

illion

)

(RM

B m

illion

)

(RM

B m

illion

)

1H 2012 1H 2013

9,732

14,164

1H 2012 1H 2013

13,620

16,771

11

Net non-interest income reported rapid growth

Note: Based on consolidated Group financials

Net non-interest income Net fee and commission income

(RM

B m

illion

)

(RM

B m

illion

)

(RM

B m

illion

)

544

785

1H2012 1H2013

3,613

4,638

1H2012 1H2013

824

1,016

1H2012 1H2013

1,0951,284

1H2012 1H2013

805

1,553

1H2012 1H2013

12

Wealth management income continued to maintain significant growth

Fees and commission income from wealth management services

Income from entrusted wealth management

Fees from distribution of third-party trust plan

Income from distribution of mutual fund

Income from distribution of third-party insurance policies

Note: Based on standalone Bank financials

(RM

B m

illion

)

(RM

B m

illion

)

(RM

B m

illion

)

(RM

B m

illion

)

(RM

B m

illion

)

2,539

3,636

1H2012 1H2013

1,459

1,922

1H2012 1H2013

653

1,139

1H2012 1H2013

423

760

1H2012 1H2013

350

521

1H2012 1H2013

13

Other intermediary businesses experienced strong growth

Non-interest income from international business

Fee income from retail bank cards

Income from investment banking business

Intermediary business income from asset custody business

Intermediary business income from cash management

Note: Based on standalone Bank financials. Non-interest income from international business includes: onshore corporate business, offshore coordination, and coordination with Hong Kong and New York

(RM

B m

illion

)(R

MB

milli

on)

(RM

B m

illion

)(R

MB

milli

on)

(RM

B m

illion

)

1,252

1H 2013 Bills spread income

Bills spread income

(RM

B m

illion

)

434.2 509.8

2012 1H2013

26.36%

34.58%

2012 1H20132012 1H2013

38.16%38.32%

2012 1H2013

58.26%

59.30%

2012 1H2013

1,672.01,870.4

Retail banking business maintained positive growth momentum

AUM of Sunflower-level and above customers

AUM of private banking customers

Proportion of retail deposits increased steadily

Proportion of demand depositsfrom retail customers remained

at a relatively high level

Proportion of retail loans further increased

35.60%35.86%

2012 1H2013

177,139

255,112

2012 1H2013

Growth and proportion of micro enterprises loans

Total micro enterprises loans

Proportion of micro enterprises loans to

total retail loans

Note：Based on standalone Bank financials

(RM

B b

illion

)

(RM

B b

illion

)

(RM

B m

illion

)

14

10.5

11.7

2012 1H2013

21.80 23.44

2012 1H2013

178.2

266.6

1H2012 1H2013

2,5003,064

1H2012 1H2013 Proportion of revolvingbalance of credit cards

Interest income growth

1H2013

33.17%36.13%

Bank card business maintained a robust growth rateAverage transaction value per

month of each active credit cardNo. of credit cards in circulation Percentage of revolving balances of

credit cards and growth of interest income from credit card business

Growth of cumulative transaction value and non-interest income of

credit card business

Note: Based on standalone Bank financials

Average deposits per All-in-one card

POS transaction value of All-in-one cards

(Mill

ion

card

s)

(RM

B b

illio

n)

(RM

B th

ousa

nd)

(RM

B)

42.81% 42.42%

累计交易额增幅 非利息业务收入增幅

1H2013年同比增幅

Cumulative transaction value growth

Non-interest income growth

1H2013 YoY growth

15

79.9

128.9

1H2012 1H2013

219,144

265,044

2012 1H2013

63,206

124,803

1H2012 1H2013

2,518

3,405

2012 1H2013

6,288

8,404

2012 1H2013

Developed wholesale business was further consolidated and upgraded

Total No. of cash management customers

Cross border RMB settlements

Balance of offshore deposits

Offshore trade financing balance

Note: Based on standalone Bank financials

(RM

B m

illio

n)

(US

D m

illio

n)

(US

D m

illio

n)

1,468

5,788

1H2012 1H2013

2,153

4,465

1H2012 1H2013

(US

D m

illio

n)

(US

D m

illio

n)

(No.

of c

usto

mer

s)

International factoring transaction value

Forfeiting transaction value

(US

D b

illio

n)

Inter-bank cross border RMB clearing service

16

351.4

567.6

1H2012 1H2013

(RM

B b

illion）

Electronic financial supply-chain trading volume

56,400

73,421

1H2012 1H2013

(RM

Bm

illio

n)

0.91

1.44

1H2012 1H2013

(RM

B tr

illio

n)

Emerging wholesale business has maintained solid growth momentum

Investment bankingUnderwriting amount of debt financing instruments

Asset custodyBalance of assets under custody

9.95

20.56

1H2012 1H2013

(Ton

nes)

2.04

2.50

1H2012 1H2013

(RM

B tr

illio

n)

Financial marketSales of wealth management products

Financial institutions businessThe volume of precious metal leasing

Note: All data on this slide is based on standalone Bank financials17

18

"Qian Ying Zhan Yi" business continued to increase its impact and brand recognition

Total No. of innovative and emergingenterprises customers under the "Qian

Ying Zhan Yi" program

Currently, the company has licensed and established 77 “QianYing Zhan Yi Innovative Sub-branches” across the country to serve enterprise in the program

In the future, the Company will further explore and nurture innovative emerging enterprises, license and establish 100 "QianYing Zhan Yi Innovative Sub-branches" across the country in the next one to two years as the incubators for technologically innovative and growth enterprises, continue to enhance corporation with domestic and international private equity institutions to expand cooperative scope, and promote innovation in financial products and services

"Qian Ying Zhan Yi" program to nurture innovative emerging enterprises

Balance of loans to enterprises under"Qian Ying Zhan Yi" program

7,581

12,852

2012 1H2013

(No.

of c

usto

mer

s)

65.4

110.0

2012 1H2013

(RM

B b

illio

n)

Note: All data on this slide is based on standalone Bank financials

1H2012 1H2013

网上企业银行累计交易笔数零售网上银行累计交易笔数

(10,

000

trans

actio

ns)

2,020 2,345

32,341.96

49,132.96

29 30

24 25

2012 1H2013

Private Banking Centers Key Cities

961 981

2,174 2,190

2012 1H2013

机构网点数 自助银行

(No.

of b

ranc

hes)

90.66% 91.85%

2012 1H2013

52.40%57.49%

2012 1H2013 2012 1H2013

88.47% 90.27%

19

Distribution channel became well-rounded while service efficiency continued to improve through e-banking

Continued rapid growth of total No. of on-line banking transactions

Fast growing mobile banking,creating new advantages in the

mobile internet era

The Company became the first domestic bank to launch a new-concept service called “WeixinBanking” in 1H 2013

The personal mobile banking service of the Company continued to maintain rapid growth in 1H 2013 and was awarded the “Best Mobile Banking in China” by The Asian Banker.

The accumulated transactions (excluding mobile payment) amounted to 17,222,800, up by 358.93% YoY; the accumulated transaction value reached RMB420.8 billion, up by 228.49% YoY

Multi-layer physical distribution channel: including highly efficient branch network and established private banking centers

Industry leading e-banking channels: effectively relieved the pressure on branch outlets and reduced operating cost

Steadily improved overall counter-replacement ratio in transaction

settlement using online corporate banking services

Continuously improved overall counter-replacement ratio in e-

banking channels

% of countersreplaced by retailE-banking service

% of countersreplaced by corporate

E-banking service

Note: All data on this slide is based on standalone Bank financials

Branches and sub-branches

Self-service banking outlets

Accumulated online corporate banking transactions Accumulated online retail banking transactions

Agenda

1 Overview

2 Operational Information

3 Key Tasks in 2H2013

4 Outlook and Strategies4

Focus on the key development areas of retail

business

Vigorously promote the development of

wholesale businesses

Continue to implement risk prevention

Further enhance expense management

Ensure better support for operations

Steadily increase international presence and

expand business scope

21

Key tasks in 2H 2013

Promote business development

throughout the bank with

emphasis on key fields

Agenda

1 Overview

2 Operational Information

3 Key Tasks in 2H2013

4 Outlook and Strategies4

23

Challenges and opportunities

Accelerating economic and social transformations bring broad prospects for the demand in corporate financial services

Rapid accumulation of wealth increases the demand for wealth management

Steady advancement in RMB internationalisation increases the opportunities for cross-border finance business

The development of the multi-level financial market system increases the emerging bank business opportunities

Significant progress in IT development provides great potential for internet finance

Cha

lleng

esO

ppor

tuni

ties

Internationally Domestically Signs of economic slowdown are increasingly notable

Competitions escalate as financial disintermediation grows in depth and pace

The operations of domestic banks are posed with challenges as interest rate liberalisation speeds up

Increasing uncertainties on the financial market bring more difficulties to bank liquidity management

The contradiction between the downward pressure on economic growth and excessive production capacity becomes more prominent

The in-depth impact of the financial crisis persists

The recovery of the world economy remains sluggish

The financial market remains volatile

24

Strategies

Optimise the small and micro enterprises strategy and improve the overall

service standards for high-net-worth customers

Strengthen retail banking's existing advantages whilst developing and

enhancing competitiveness in the wholesale banking business

Improve service standards, optimise business processes and enhance

innovation abilities

Further enhance overall risk management to ensure stable and sustainable

development

Q&A